Unlimited cashback card launched by UOB and American Express

UOB Absolute Cashback Card Infographic

UOB and American Express launch cashback card that meets the needs of consumers who want unlimited cashback on all card spend

unlimited cashback
image: UOB

The UOB Absolute Cashback Card is the first credit card by a local bank that offers customers cashback on all credit card spend, which includes those on insurance, school fees, hospitals, rent and wallet top-ups which are typically not eligible for rewards and cashback. Customers can stretch their spending dollar with the UOB Absolute Cashback Card’s highest flat cashback earn rate of 1.7 per cent in Singapore, without having to worry about any spend exclusions, meeting a minimum spend requirement, or having a cap on the cashback earned.

The new cashback product meets the needs of a growing segment of consumers who want a straightforward and fuss-free way to earn unlimited cashback on all transactions. According to a UOB survey, two in three respondents said they want to earn cashback on all card spend. The UOB survey was conducted together with RFi Consulting in May 2020 among 1,275 individuals in Singapore aged between 21 and 55 years old.

The UOB Absolute Cashback Card is also set to become a favourite among these respondents, with almost 80 per cent of them saying such a card would quickly become their most frequently used card.

Ms Jacquelyn Tan, Head of Group Personal Financial Services, UOB, said that the Bank’s expanded suite of cashback credit cards is in tune with customers’ shifting preference towards optimising the value of their spend through cashback cards. The UOB Absolute Cashback Card is a strategic addition to the Bank’s credit card line-up, which includes the UOB One Card, to give customers the choice of a unlimited cashback card that best meets their lifestyle priorities and needs.

“Given the disruptions of COVID-19 to the economy in 2020 and increased expenses for necessities such as groceries and utilities, more consumers are looking for financial solutions to help them draw more value from their spend. More than 70 per cent of new UOB credit card sign-ups in 2020 were for cashback cards, up from 45 per cent in 2019.

“Last year we enhanced our flagship cashback card, the UOB One Card, to continue to provide the highest cashback rate in the market in areas where our customers spend the most and which align to their lifestyle priorities, such as household essential items, online shopping and ride-hailing. As part of UOB’s extensive partnership ecosystems, UOB One cardmembers can earn up to 10 per cent cashback when they spend at popular merchants such as Dairy Farm Singapore, Shopee and Grab.

“The UOB Absolute Cashback Card complements our suite of cashback credit cards to meet the growing demand for a simple way to earn cashback on all card spend, which is most prominent among affluent and mass affluent consumers according to our survey findings.”

According to UOB’s survey, affluent (74 per cent) and mass affluent (55 per cent) consumers value a simple card proposition the most when looking for a cashback credit card. Affluent consumers refer to those above 30 years old with assets above $180,000, while mass affluent consumers refer to those between 21 and 40 years old with assets between $80,000 and $180,000.

Mr Sanjiv Malhotra, Vice President and General Manager, Global Network Services, South East Asia and South Pacific, American Express, said, “American Express continues to expand our product offerings tailored to support the evolving needs and lifestyle of UOB’s customers. The introduction of the UOB Absolute Cashback Card strengthens our relationship with UOB and shows our commitment to delivering products with the best value and relevance to our customers.”

Mr Paul Ho, chief officer at iCompareLoan, said: “Every credit card has an appealing set of benefits to convince you to apply for it such as cashbacks or for the collection of airline miles, but unlimited cashback certainly meets a growing demand.”

Do not apply for a credit card without understanding the fine print first. It can be frustrating trying to comprehend credit card terms, but it is always important to know and understand the details upfront than to incur surprise fees and charges if you qualify. Before you sign the application for a credit card, make sure that you know exactly what you’re getting into. Below is an example of the Fees and Charges, and Eligibility when applying for a credit card:

  • Interest-free Period 23 calendar days from statement date if there is no balance carried forward from the previous statement.
    Interest on Purchases The interest rate is 26.88% per annum. If full payment is not received by the due date, a minimum charge of $2.50 a month, calculated from the transaction date, will be billed to your account.
  • Interest on Cash Advance 28.92% per annum no the amount withdrawn subject to compounding if the monthly interest charge are not received in full (minimum charge of $2.50).
  • Late Payment Charges $100 if minimum payment is not received by the payment due date.
    Annual Fees $192.60 (Principal card)
    $96.30 (Supplementary card)
  • Cash Advance Fee $15 or 6% of amount withdrawn whichever is greater.
    Age 21 years and above
  • Annual Income $30,000 and above for Singaporeans and Singapore PRs
    $45,000 and above for foreigners

Before you start choosing a card, ask yourself these questions:
• Can I pay for the purchase in full every month?
• Or do I intend to pay the minimum sum required and carry the balance from month to month?
• If I do rollover the remaining amount after paying off the minimum sum, can I pay the extra charges incurred?
• Is this card meant for emergencies only?

The truth is, being responsible with your credit card activity is vital as it will reflect positively on your credit report. Using your credit card responsibly and paying in full every month will help you to build a strong credit history which could put you in good stead when applying for a car loan or home mortgage. Having a credit card in your wallet does not mysteriously incur debt, but it can help you improve your credit score as it is tabulated based on past and current credit activities.

Written by Ravi Chandran

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